HUD Announces Fair Lending Agreement with Mortgage Company

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced the entry of a Conciliation Agreement (Agreement) between the National Community Reinvestment Coalition (NCRC) and Movement Mortgage LLC, resolving allegations that it engaged in discriminatory lending practices based on race and national origin, in violation of the Fair Housing Act. Read the Agreement.

The Fair Housing Act prohibits mortgage lenders and others involved in housing-related lending practices from discriminating because of race, color, religion, national origin, sex (including gender identity and sexual orientation), disability, and familial status.

"This agreement reflects HUD's commitment to ensuring that everyone has equal access to credit regardless of their race or national origin," said Demetria L. McCain, HUD's Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. "It is imperative that lenders comply with fair housing laws. HUD will continue working to ensure that all applicants are treated equally."

This Agreement arises from a complaint filed with HUD by NCRC alleging that it had conducted testing in the Seattle-Tacoma area, which revealed different treatment of Black and Hispanic testers and White testers seeking housing loans. Movement Mortgage, LLC denies having provided less favorable treatment to the testers based on race or national origin.

Under the Agreement terms, Movement Mortgage LLC will pay $65,000 to NCRC and contribute an additional $10,000 to a Seattle-area non-profit organization specializing in providing financial literacy and housing education and counseling for persons in majority-minority census tracts in the Seattle-Tacoma-Bellevue metropolitan area. Movement Mortgage, LLC will also conduct a "Grab the Key" event in the Seattle metro area designed to improve homeownership rates of Black homebuyers. Employees of Movement Mortgage LLC will also complete additional fair lending training. The agreement should not be construed as an admission of fault by the mortgage company or as evidence of a finding that Movement Mortgage LLC violated the Fair Housing Act.

Individuals who believe they have experienced discrimination in housing may file a complaint by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Federal Relay Service).

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